Generating a flat file with chr(10)

Folks,
I need to create some data in a flat file ( read: plain vanilla ), with
the value of each var on a seperate line. I would have thought the
following would work, but it does not. It keeps giving me a blank line
between DB rows.
set linesize 500
set pagesize 0
set heading off
set headsep off
set timing off
set verify off
set echo off
set feedback off
set serveroutput on size 500000
set termout on
set colsep''
ttitle off
btitle off
set trimspool on
--
define newline = chr(10) -- <=== new line char
--define newline = "''"
--
select var1 || &newline || var2 || &newline || var3
from some_table
where trans_dt= '01-may-2008'
;
Here are three written rows;

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